China to shift direction of government investment
( 2003-12-24 22:27) (Xinhua)
The Chinese government is to readjust the direction and change the structure
of investment funded by the issuance of treasury bonds, as it will continue to
carry out a pro-active fiscal policy for the near future, Chinese Minister of
Finance Jin Renqing said Wednesday Beijing.
Jin said that as the Chinese economy is in the rising period of a new
economic cycle, the government has to be alert and nip tendencies to both
inflation and deflation in the bud. He said the Chinese government had made the
correct and necessary decision to readjust its economic and fiscal policies
while maintaining the continuity of the policies.
Jin made the remarks at a national fiscal work meeting here. He said the
government would channel more T-bond funds to the construction of infrastructure
in rural areas, public health facilities, and environmental-protection and
water-conservancy projects. He said that government investment would also be
tilted toward the development of the western areas of the country, rejuvenation
of old industrial bases in northeast China and large- scale construction
projects such as the Qinghai-Tibet railway.
Jin said the government would shift the focus of utilizing T- bond funds from
maintaining the pace of growth of the economy to economic restructuring and
balanced development.
China has pursued a pro-active fiscal policy since 1998, and successfully
maintained rapid economic growth by expanding domestic demand with government
investment.
Jin said that, after years of reform and development, the Chinese government
has accumulated a huge amount of funds that can be used to secure inclusive,
balanced and sustainable development of society and the economy. He said the
government should make better use of the funds gathered by issuing treasury
bonds, so as to improve the economic returns from government
investment.
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